Authorities, including the U.S. Attorney for New Jersey, said Cooper violated the federal and the state False Claims Act by paying physicians under so-called “consulting” and “compensation” agreements.

Cooper allegedly recruited the outside doctors between Oct. 1, 2004, and Dec. 31, 2010, to serve on the Cooper Heart Institute Advisory Board (CHIAB). Each year, they were paid about $18,000 to go to four meetings, authorities said.

That, investigators argued, brought referrals from the doctors, as was intended. Cooper billed Medicare and Medicaid for services prompted by the referrals, they continued, violating federal and state anti-kickback and self-referral laws.

Cooper President and CEO John P. Sheridan Jr., meanwhile, maintained the CHIAB was a legitimate program that was nonetheless subject to “complex” regulationson the health care industry.

The False Claims Act suit was filed by a doctor recruited to take part in CHIAB. The doctor felt the program was fishy, investigators said, and filed a whistleblower complaint, known as a “qui tam” action.

Qui tam provisions in the False Claim Act allow private individuals to file the complaint and receive part of the settlement proceeds.

Sheridan on Thursday evening released a statement on the settlement.

“After more than three years of extended discussions with government lawyers,” he wrote, “we decided, in the best interests of Cooper, to settle our dispute without the admission of wrongdoing to avoid the burdens and uncertainties of a protracted litigation.

“This allows us to focus our full energies on serving our community.”

Sheridan stressed that Cooper decided to settle “without impairing the current operations of the Health System, merit increases or any of our future plans and programs.”

He continued by saying the CHIAB aimed to improve Cooper’s cardiac program.

“It was reviewed by outside legal counsel before it began operations,” he said. “Cooper believed that the Advisory Board (CHIAB) met regulatory requirements. The government disagreed. It is important to note that there is no contention that this program led to any unnecessary or inappropriate services at any time.

“The rules are complex, the margin for error is small and the financial consequences of even well-intentioned actions can be substantial, regardless of the necessity and integrity of the underlying medical care.”

Under the settlement agreement, Cooper agreed to pay $10.2 million to the federal government and $2.3 million to New Jersey. The health system has also enacted reforms meant to help avoid similar misdeeds, authorities said.